An important global banking premium was awarded to the Reserve Bank of South Africa, for a system that uses the Ethereum network. The Khoka project processes interbank payments using the blockchain.
The Khoka project received the FinTech & RegTech award as the best initiative for distributed accounting, from the Central Bank international banking forum. It was launched for the first time by the Reserve Bank of South Africa to assess the performance, scalability, privacy, resilience and purpose of a blockchain solution under the most realistic conditions possible.
Based on the Quorum network of JP Morgan, which is an offshoot of the Ethereum blockchain, the entire solution was designed, built and delivered in less than three months.
To learn more: JPMorgan asks for the patent for the payment system blockchain
Each bank in the network was responsible for creating its own node, and the payments were processed using a digital currency token fiat of South Africa, the rand, supported by deposits of central banks. The Khoka project has been able to move from 70,000 transactions per day to 200,000.
Announcing the award, the Central Bank emphasized how important it is for regulators to "work together to safeguard the financial system without stifling innovation," complaining about how slow the process has been until now.
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